Marginal Costing Perspicacious

The total variable cost change _________________________with change in output

• Consistently

• Constantly

• Proportionately

• Un proportionately

Fixed cost + profit =

• Semi - variable cost

• Margin of safety

• Contribution

• Standard profit

An increase in variable costs results in

• An increase in P/V Ratio

• Reduces contribution

• Increase in Profit

• None of the above

When fixed cost is Rs.20,000 and P/V Ratio is 40%, the breakeven point will be

• 75,000

• 40,000

• 20,000

• 50,000

Marginal cost is also known as

• Absorption cost

• Standard cost

• Variable cost

• None of the above

Margin of Safety is the difference between the

• Planned sales and the planned profit

• Actual sales and Break even sales

• Planned sales and the break even sales

• None of the above

Contribution margin is also known as

• Marginal income

• Gross Profit

• Net Profit

• All of the above

_________________________________ is the excess of sales over the break even sales.

• Contrbution

• Fixed cost

• Variable cost

• Margin of Safety

Fixed cost is also known as______________________________

• Flexible cost

• Marginal cost

• Period cost

• All of the above

if the total cost of 100 units is Rs. 5,000 and those of 101 units is Rs. 5,040 then increase of Rs. 40 in total cost is

• Marginal cost

• Prime cost

• Fixed cost

• None of the above